Thursday, June 21, 2007

We have some rotations in the banking sector. I am beginning to detect a pattern where middle level and senior regulators and officials get to rotate to a commercial bank, where they enjoy a few years of high salary. Then, they can either choose to stay or return to poverty. If this can reduce corruption, I think that would be a pretty good system. So, Tang Shuangning, the vice chair of CBRC, will rotate to head the Everbright Group, while Xiang Jinbo, the vice governor of the PBOC and the head of the PBOC Shanghai branch, will head the Agricultural Bank of China. This repeats the rotation of a well-known technocrat(Guo Shuqing) to a crucial bank reform case (CCB). The ABC restructuring is running into some problems, and Xiang was picked as the person to deal with the conflicting demands between the policy burden of financing rural development and bank commercialization and listing. Meanwhile, Citibank will have to contend with Xu Feng, a CBRC official who will head the Shanghai Pudong Development Bank, in which Citibank has ownership. I am glad that these technocrats get to earn some money for their kids'college tuition! Someone else will have to take care of those expensive boarding school fees......

http://www.sina.com.cn 2007年06月21日 03:40 中国证券网-上海证券报

  ⊙本报记者 苗燕







I was just browsing around and found your blog. I read last post and I am not sure if I got it right. But if I did, are you sure that rotation of managers to better positins can prevent them from corruption just for the sake of getting better payment - I am not so sure about it.
Hi, on the contrary, I am suggesting that not even bank president's salary in China can satisfy the cash cravings of these guys. A stint as a bank president may be enough to pay for college tuition, but these guys all want to send their kids of expensive private schools in the US or the UK. So, in come the I-bankers and hedgefund managers to pay for all that....well at least according to all the rumors.
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